Celsion Corporation has announced the closings of its previously announced sales of an aggregate of USD18.4 million of the company’s securities, of which USD13.0 million was from institutional investors in a registered direct offering and an additional USD5.4 million was from other investors in a private placement.
The company received approximately USD17 million in net proceeds from the offerings, after deducting placement agent fees and estimated offerings expenses. In the registered direct offering, the investors received approximately 3.0 million shares of the Company’s common stock and warrants potentially exercisable for up to 914,305 additional shares of its common stock. The securities were sold in units at a price of USD4.2575 per unit, with each unit consisting of one share of common stock and a warrant to purchase 0.3 shares of common stock.
In the private placement, other institutional investors, a member of the company’s Board of Directors, and an investor affiliated with another member of the company’s Board of Directors received approximately 1.3 million shares of the company’s common stock and warrants potentially exercisable for up to 512,412 additional shares of its common stock. The securities were sold in units at a price of USD4.27 per unit, with each unit consisting of one share of common stock and a warrant to purchase 0.4 shares of common stock.
The warrants in the offerings are immediately exercisable at a price of USD4.22 per share, for total potential additional proceeds to the company of up to approximately USD6 million upon exercise of the warrants. The warrants will expire in five years. The estimated net proceeds to the company from the common stock purchased in the offerings are expected to be approximately USD17 million. The company intends to use the net proceeds from the offerings for general corporate purposes, including the funding of the clinical development of its product pipeline of cancer drugs.
The closing of the registered direct offering triggers the mandatory conversion of all of the company’s outstanding preferred stock to common stock after the Company has notified the holders of the company’s preferred stock of the conversion. As of July 19, 2011, 839 shares of 8% Series A Redeemable Convertible Preferred Stock were outstanding, which are convertible into 349,582 shares of our common stock. No other shares of preferred stock were outstanding at that time.
